MR. MCCLELLAN: Let me go through the President's morning and the
schedule for the day, and then I'll be happy to take some questions. I
do have one issue I want to bring up as well.

Let me begin with giving you a readout. The President
this morning
called President Megawati. He called to express his condolences for
the tragic bombings in Bali and to reiterate his offer of U.S.
assistance and support in bringing the people responsible to justice.

The two leaders agreed that the Bali bombings required a swift and
decisive response and they further agreed to work together with other
concerned governments, particularly the government of Australia, to
bring the perpetrators to justice. President Bush and President
Megawati also look forward to discussing these and other issues at the
upcoming APEC summit next weekend.

The call was about 20 minutes. I think the conversation was a
little less, because you have an interpreter.

Q How many minutes?

MR. MCCLELLAN: Twenty. But you also have an interpreter, so the
conversation was probably --

Q The President the other day said he wanted to hear from the
leader a resolve to fight terrorism. Did he hear that from her?

MR. MCCLELLAN: I'm sorry?

Q The President said the other day very bluntly he wanted to
hear from Megawati a sense of resolve, a sense that she was finally
going to do something. Did he hear that?

MR. MCCLELLAN: I think the latest indications from Indonesia are
that they -- that they are taking steps to combat terrorism. We have
been working constructively and cooperatively with President Megawati
and her government to combat terrorism and we -- we will continue to
support them in their efforts --

Q Could we just shorthand this --

MR. MCCLELLAN: -- to particularly find these perpetrators.

Q Could we shorthand this? Did the President hear what he
wanted to hear from her?

MR. MCCLELLAN: In what sense, Ron? I'm sorry.

Q Did he hear from her a commitment that she will step up and
fight terrorism now?

MR. MCCLELLAN: It was a constructive conversation and, as I
indicated just a minute ago, they -- the two leaders, agreed that there
needed to be swift and decisive action in response to the latest
bombings.

Q Did the President bring up at all -- did the President
bring up at all the notion that President Megawati had not been doing
enough up to this point to combat terrorism?

MR. MCCLELLAN: I think the President continued to urge President
Megawati to do all that she can to combat terrorism, and that we are
going to continue working with them in that effort.

Q When you say a swift and decisive response, Scott, does
that mean retaliate against al Qaeda, or what does that mean?

MR. MCCLELLAN: As you know, I think the investigation is ongoing
at this point. But both leaders agree, as well as with other countries
I mentioned, that we need to bring these perpetrators to justice, that
those people who are responsible for the attacks need to be brought to
justice so --

Q -- al Qaeda?

MR. MCCLELLAN: We're letting the -- well, the President made
remarks on that the other day. But the investigation is ongoing.

The President had -- following the phone call, the President had
his usual intelligence and FBI briefings this there will be a Freedom
Corps greeter at the first stop in Atlanta, Jill Sieder, who founded
the East Atlanta Kids Club and spends approximately 25 hours a week as
the coordinator for the Kids Club, that helps at-risk children.

Following that, the President will make remarks at the Georgia 2002
Unity Luncheon to support Congressman Chambliss' campaign for the U.S.
Senate, as well as Sonny Perdue's campaign, gubernatorial campaign, and
the Georgia Republican Party. The event is expected to raise $800,000
for Congressman Chambliss' senatorial campaign and the statewide
Republican 2002 victory efforts.

Q The $800,000, that gets divided up, somehow to both?

MR. MCCLELLAN: Right. Following that, we will go to Florida,
where the President will begin by participating in a roundtable and
make remarks highlighting his Reading First initiative and the historic
No Child Left Behind Act. Florida has been very involved in efforts to
promote reading and make sure that -- and implement education reforms
within the state.

Following that, the President will deliver the keynote remarks via
satellite to the U.S. Hispanic Chamber of Commerce National
Convention's Tribute to Hispanic Businesswomen's Luncheon. There, he
will talk about the importance of small business and entrepreneurship
to job creation and economic growth.

Q Where are they meeting?

MR. MCCLELLAN: They are meeting in -- one minute, please -- Los
Angeles.

Q Can we officially ask that you let at least one pooler in
the event tonight? There's a long history of the Presidents allowing
-- even in a private residence -- allowing one pooler in.

MR. MCCLELLAN: I'll take the request. But we typically have not
opened up -- these are private residences; those have typically not
been opened in the past. But I'll -- I'll see what I can do. But you
also have a private family that owns this home, so we'll see what we
can do.

Q Whose home is it?

MR. MCCLELLAN: Home of Bruce and Lesa Kennedy.

Q What do they do, do you know?

MR. MCCLELLAN: I don't have --

Q Has the owner of the residence objected to opening it up?

MR. MCCLELLAN: Supporters --

Q Scott, the President is a powerful man, and if he would
like to have -- he can request --

MR. MCCLELLAN: Let me take your request, but we have, in the past,
the receptions at private homes have not been open events. So let me
take your request.

Let me make some remarks on one other issue that I think is an
important development in Congress. Congress is leaving town in a
fiscally responsible way by passing a continuing resolution that is
clean. This is a significant victory for fiscal discipline, and a
striking departure from how Congress has previously left town. In the
past, Congress has tended to go on a spending spree as they prepare to
leave town. And I just wanted to point out that this is a significant
victory for fiscal discipline and fiscal responsibility.

Q -- what you were saying?

MR. MCCLELLAN: That the passage of a continuing resolution that is
clean, and holding the line on spending. We hope that this is a sign
that things are being done differently under President Bush's
leadership, and we hope this new direction and new tone will be lasting
in the Congress.

Q -- is he going to sign it?

MR. MCCLELLAN: Well, we'll let you know when we have that
scheduled for signature. And that's all I have.

MR. MCCLELLAN: Well, I think it's what was indicated last night by
the Department of State, that we seek a peaceful resolution. This is a
serious violation of the agreed framework and the nonproliferation
treaty. I talked to the President about this. The President believes
this is troubling and sobering news. I would point out that -- and
this was expressed in Richard Boucher's statement last night, that it
was the United States that confronted North Korea about the information
that we had acquired, and North Korea acknowledged that they had a
secret program.

Q -- President's words, this is a troubling, sobering news,
or is that your quote?

MR. MCCLELLAN: That's what I'm saying on behalf of the President.
That's what he --

Q -- not his words? Those are not his words, those are your
words?

MR. MCCLELLAN: Well, they're his spokesman's words. After -- I
talked to him about it and that's -- yes.

Q Does he see it as a good sign that the North Koreans
admitted to this? Does he see that as a hopeful sign?

MR. MCCLELLAN: Well, again, I think he views it as I described it,
troubling and sobering. And as I said, this is a serious -- serious
violation. And that's why we are addressing this through diplomatic
channels. We are working -- we're consulting with Congress, we're
consulting with our friends and allies. As the statement noted, we
have officials in the region to discuss this with friends and allies
about how to proceed. But we continue to seek a peaceful resolution.

Q Why is it we just got a resolution to go to war against a
country that we think has nuclear weapons, that we think has weapons of
mass destruction, but we're seeking a peaceful solution against a
country that admitted to us it has a secret nuclear weapons program for
many years? It's been deceiving us just as Saddam supposedly has.

MR. MCCLELLAN: Well remember, Ron, what the President said last
week in his remarks in Cincinnati. Iraq is unique. Iraq is an
aggressive invader that has launched military attacks on neighboring
nations recently; that Iraq has also demonstrated a willingness to use
weapons of mass destruction. If you go back to the President's
remarks, he pointed this out very specifically. He said the threat
from Iraq stands alone, that Iraq's weapons of mass destruction are
controlled by a murderous tyrant who has already used chemical weapons
to kill thousands of people.

And the same murderous tyrant has tried to dominate the Middle East
and has invaded and brutally occupied a small neighbor as recently as a
decade ago. So Iraq is unique.

And as he pointed out in the remarks, too, when he quoted one of
the former chief weapons inspectors for the U.N., he said, the
fundamental problem with Iraq remains the nature of the regime itself.
Saddam Hussein is a homicidal dictator who is addicted to weapons of
mass destruction. And again, he has demonstrated his willingness to
use those weapons of mass destruction.

But we -- yes, go ahead.

Q Does the President think that the leader of North Korea is
a murderous dictator addicted to weapons of mass destruction?

MR. MCCLELLAN: Clearly, North Korea is a repressive -- has starved
its people and -- but these are different regions, different
circumstances, as I just pointed out. And so we're --

Q Does the President --

MR. MCCLELLAN: -- so -- and --

Q Does he think he's less dangerous than Saddam Hussein?

MR. MCCLELLAN: We are not --

Q -- intent is to not wait for something to happen.

MR. MCCLELLAN: We are seeking a peaceful resolution. This is
something that is best addressed through diplomatic channels at this
point, in consultation with our friends and allies, others who have a
stake in what is going on.

Q Is this -- a channel between the U.S. and North Korea, or
is that just completely stopped?

MR. MCCLELLAN: There is -- there are no plans to hold further
talks at this time.

Q Are there any plans for the President to talk to the
leaders of South Korea and Japan about --

MR. MCCLELLAN: We have officials, as indicated in the statement
last night, in the region.

Q Why no plans to hold further talks at this time? Why not
talk to these people?

MR. MCCLELLAN: I think now this is appropriately addressed about
how to proceed with our friends and allies in the region, and in
consultation with our friends and allies, and in consultation with
Congress.

Q Will the U.S. continue to fulfill its obligations under the
'94 agreed framework? Are we going to stop those payments for the
reactor?

MR. MCCLELLAN: Again, I think, rather than addressing this through
media channels at this point, it's being addressed in consultation
through diplomatic channels. And we need to let those consultations
occur.

Q Does that agreement stand?

MR. MCCLELLAN: Well, remember, it was North Korea who told us that
it was nullified, that they were in serious violation. They are the
ones who acknowledged that they were in serious --

Q So should we consider it dead, or --

MR. MCCLELLAN: North Korea indicated that it was nullified, so,
yes.

Q Has the U.S. agreed that that agreement is dead?

MR. MCCLELLAN: They have violated the -- seriously violated the
agreement, true.

Q Do you think North Korea announced this as a way to draw
attention to their own humanitarian plight and to seek economic
assistance?

MR. MCCLELLAN: I'm sorry?

Q Do you think North Korea announced this as a way to draw
attention to their own humanitarian plight and seek economic
assistance?

MR. MCCLELLAN: I can't speak for North Korea. Again, I would
remind you that it was the United States that confronted North Korea
with this.

Q Why did we wait until the North Koreans acknowledged,
rather than when we presented them with evidence a couple of weeks
back. Why didn't we announce that they -- we had that evidence
publicly?

MR. MCCLELLAN: Well, again, it was addressed on the meeting on
October 4th. We confronted the North Koreans with this information.
North Korea acknowledged that they did have a secret program.

Q Is the President going to address this matter today?

MR. MCCLELLAN: I don't expect him to. Again, this is something
that right now is best addressed through diplomatic channels. Our view
is very clear. We seek a peaceful resolution.

Q Scott, does the U.S. have any particular demands, in terms
of, you know, North Korea has to let in inspectors, or they have to
provide some other assurances that they now will end their nuclear
weapons program? What specifically are we expecting the North Koreans
to do now that this is acknowledged?

MR. MCCLELLAN: I think it was what was addressed in the statement,
that we expect and call on North Korea to comply with its commitments
under the nonproliferation treaty, and to eliminate its nuclear weapons
program in a manner that is verifiable. We addressed that last night
in the statement by Richard Boucher.

Q Which friends and allies are we talking to about this?

MR. MCCLELLAN: Well, again, the ones in the region, as well as
others. And as well, the President does intend to bring this up with
President Jiang next week in Crawford. As you know, they are meeting
on Friday, and the President does intend to bring this up.

Q Scott, have you been on Pakistan, pulling back the same way
India has? What's the administration's response?

MR. MCCLELLAN: Well, we welcome the announcement. There are a
couple of positive developments in the region that will help reduce
tensions. You also have a statement from Pakistan today that it will
-- it too will begin withdrawing military forces from the border. So
these are very positive developments to reduce tensions and hopefully
create an atmosphere conducive to dialogue between the two nations.

Q The Council on Foreign Relations is releasing a report
today saying that the war on terror is going to be severely crippled
unless the U.S. addresses Saudi funding of terror. Has the White House
seen that report?

MR. MCCLELLAN: I don't -- I'm not aware that we have seen it.
Treasury Department did comment on it, point it out that they viewed
some serious flaws in the report, about not looking at what Saudi
Arabia has been doing recently. We appreciate the cooperation from the
Saudis in cracking down on terrorism, particularly in working to
regulate charities that could be funding sources for terrorism. So we
are continuing to work with the Saudis.

Q -- that much credence in that report?

MR. MCCLELLAN: Well, the Treasury Department expressed what they
viewed as flaws in it. And, again, I go back to that we're pleased
with and appreciate the action that has been taken by the Saudis in our
global war on terrorism.

Q Do you have anything more --

MR. MCCLELLAN: -- comes to the financial network.

Q There was a report this -- there was a report that said the
Saudis may have been behind the funding for the Bali bombing. Ari was
asked about it yesterday and he said he'd see if he could get more on
that. Do you --

MR. MCCLELLAN: I don't have any information.

Okay?

Q So, is Jeb in trouble?

MR. MCCLELLAN: The President looks forward to going to Florida
today to campaign on behalf of the party, as well as strongly support
his brother's reelection campaign. But the governor of Florida has a
proven record that the people of Florida are responding to in a very
strong way. He shares the President's agenda when it comes to
improving education. And that's an important issue in this
reelection. And Governor Bush has a very strong record when it comes
to implementing education reforms and making sure that every child
receives a first-rate education.

Q He'll be at the education event, Jeb?

MR. MCCLELLAN: Yes, yes.

Q So he's not worried about his brother at all?

MR. MCCLELLAN: The President is confident that his brother is
going to win reelection because of his proven record of accomplishment
in the state of Florida.